978-1-292-08466-4

Rona and Rus are in partnership and the following Trial Balance was extracted from the books of the partnership on December 31 2019 Drs Crs Fixed Capital Accounts: Rona 14,000 Rus 9,000 Current Accounts for 1 January 2019: Rona 1,200 Rus 900 Drawings: Rona 6,400 Rus 5,500 Purchases and Sales 46,800 72,700 Rates 2,600 Bad Debts 260 General Expenses 8,900 Wages 6,400 Premises 10,000 Fixtures and Fittings 3,000 Bank 1,560 Cash 200 Debtors and 7,200 4,400 Creditors Stock (at 1 January 4,100 2019) 102,560 102,560 Required: 1. The Partnership Trading Account showing clearly the cost of sales, the Profit and Loss Account and the Appropriation Account for the year ended December 31, 2019. (20 marks) 2. The Balance Sheet as at 31 December 2019. (10 marks) 8. The Current Accounts (7 marks) 4. The Capital Accounts (3 marks) In preparing the accounts, the following matters are to be taken into consideration: i. Stock at 31 December 2019 was valued at $4.900 ii. Rates at S360 had been paid in advance. iii. The premises were extended during the year at a cost of $5,000, which has been debited to the General Expenses Account iv. Rus paid $600 for goods for resale by the fimm from her private bank account. No entries have been made in the firm's books. . Fixtures and Fittings are to be depreciated by 10% vi. After proparation of the Trial Balance, the bank sent a statement which showed that interest of $200 had been charged to the bank account. This expense has not been dealt with in the books of the partnership Interest is to be allowed on partners' capitals at the rate of 10% per annum and after